The Purchase Ledger Linked Accounts window enables you to change the Linked Accounts assigned to your purchases.
This account is credited whenever you enter purchases on account using the Purchases window. This account is debited whenever you enter a payment for a supplier using the Pay Suppliers window. This account is referred to as your
linked creditors account.
If you select the I can receive items without a supplier bill option, the Liability Account for Item Receipts field appears. Enter or select an account for tracking the cost of items you’ve received into your stock, but for which you haven’t yet received a bill.
This is also known as your linked Trade Creditors Accrual - Stock account.
If you select the I pay carriage on purchases option, the Expense or Cost of Sales Account for Carriage field appears. Enter or select an account that tracks the money you spend for the transport of items you purchase. This account is referred to as your
carriage paid account.
This account enables you to see how much of your gross purchases amount is actually goods or services, and how much is payment for delivery. This account appears on the Trial Balance, the Profit and Loss Statement and other reports.
If you select the I track deposits paid to suppliers option, the Asset Account for Supplier Deposits field appears. This field allows you to enter an account that tracks deposit amounts you pay for purchase orders.
The amount is considered an asset for your company until the purchase actually is made, because all or a portion of the deposit will have to be returned to you if the purchase isn’t made. This account appears on the Trial Balance, the Profit and Loss Statement and other reports.
If you select the I take discounts for early payment option, the (or Contra) Account for Discounts field appears. Enter or select an account that tracks discount amounts that you’ve received from suppliers for paying your bills early. This account is referred to as your
linked supplier discounts account.
This account is used to track the discounts you take for early payment, based on the credit terms your suppliers have extended to you. When you enter payments using the Pay Suppliers window, the discount amount you’re eligible for appears as a default entry and is tracked using the linked (or Contra) Account for Discounts.
If you select the I pay charges for late payment option, the Expense Account for Late Charges field appears. Enter or select an account for tracking finance charges that you’ve paid to suppliers.
This account is used to track the fees you pay when a bill payment is past due, or if you are charged a finance fee on unpaid balances. This account is updated when you enter an amount in the Finance Charge field in the Pay Suppliers window.
The terms and VAT code you select will be automatically applied to every new supplier record you add to the Card File. If you want, you can change these details for an individual supplier in the Buying Details view of the Card Information window.
